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Flashcards in Construction of a Real Covenant Deck (17):

A real covenant that is not clear, what do states do?

they are split. Some:
-see them as a contract & seek to implement intent of parties
-see them as Restraints on alienation & so narrowly construe them (mass)


Rhue v. Cheyenne Homes, Inc.

Rhue (defendant) intended to relocate a 30 year old house into a modern subdivision. The subdivision’s protective covenants prohibited the construction or location of any building in the subdivision without advance approval of the subdivision architectural control committee. Rhue did not submit plans for committee approval. Cheyenne Homes (plaintiff) petitioned for an injunction prohibiting the placement of Rhue’s house.
rule: a restrictive covenant requiring committee approval of planned construction is valid even when the covenant fails to set forth explicit approval criteria


(Amendment Rights)
Real Covenants that can be amended will......?

-run w/the land provided a perpetual mechanism is established for the exercise of the amendment rights


perpetual mechanisms established....

1)committee- must act:
-reasonably & in good faith
-need perp. mechanism to put people ON commtee
2) Vote of the majority or super-majority of the dominant estates
-works better- no overhead & runs perpetually


If a developer keeps ____ ____ _ ____ real covenants, the covenant will NOT run w/the land.

unilateral rights to amend
-developer could amend the restrictions out of existence, so they would not actually bind future land title holders
-who would get to exercise amendment right after he's gone??


Restraints on Alienation (narrowly construing problems when lang. not expressly written)

-to prevent transfer of property freely
-we WANT property to transfer freely so not in feudal times again so ..


How do we KNOW have a real covenant in construction problems (lang unclear)

Its lowering the value of our land. Restrain on alienation--so we construe it narrowly



conservative w/covenants. Not well liked here


argue are Covenants on architecture style....are they restraints on alienation?

yes-decrease value of land, makes harder to sell
no-value of property could go up cuz all the same & the people of the community like that.


languange to use for restrictions that are unclear arguments
jones v. park lane (1956)

"[the building restriction & use restriction] are wholly independent of one another and the one is not to be extended so as to include the other unless the INTENTION to do so is EXPRESSLY and PLAINLY stated; to doubt is to deny enforcement.”


two categories of restriction limitations

Building restrictions: restricting type & # of buildings (physical/external appearance)
Use restrictions: Purposes which buildings are used
-Nature of occupancy, Operations conducted therein, As affecting health, welfare & comfort of neighbors



disregard info in front of way & base decision on other grounds



"whatever"; not just disregarding info, you don't give a damn


can we have amendment rights

yes.- don't want to be locked into forever


why be careful to set up to be perpetual?

-so processing of amending can go into the future also
-if NOT perpetual then it can't run w/the land


if the developer still owns ONE last parcel left on development & has unilateral rights to amend.....?

the covenant will NOT run w/land.


builder puts " restrictions---subject to amendment"

being first buyer into neighborhood can be risky